Government criticised for lack of rural broadband cash

The government has been criticised by the Country Land and Business Association (CLA) for not investing enough money in next-generation broadband.

A report by the Department for Business Enterprise and Regulatory Reform (BERR) - which recommended no central government investment - is "seriously blinkered", according to the CLA.

The rural economy would be particularly harmed without investment ensuring fast broadband services for all, with technologies like VoIP phones only available to those with fast connections.

"Universal fast broadband is not just for games and videos, it means industry and jobs," said the director of CLA North, Douglas Chalmers.

"Some rural areas are already disadvantaged by existing broadband provision, which not only affects existing businesses but also stops new enterprises relocating and creating employment."

A recent report from BroadbandChoices.co.uk found that over one million households in the UK are still using dial-up connections.

On top of the slow connection speeds dial-up provides, meaning VoIP phones are not viable, the cheapest dial-up offer was found to be more expensive than the cheapest broadband.